Sales Less variable expenses Manufacturing Selling and administrative Tocal Contribution mergin Loss direct fixed expenses Net...

Transcribed Image Text:

Sales Less variable expenses Manufacturing Selling and administrative Tocal Contribution mergin Loss direct fixed expenses Net Income (less) Textbook Professional Company Division Division $120,000 19.200 6,000 25.200 94.800 12.000 $82,800 Management is concerned about the Professional Division and requests additional analysis, Additional information regarding May operations of the Professional Division is as follows: Sales Variable manufacturing expenses as a percentage of sales Other variable expenses as a percentage of sales Direct fixed expenses Allocated common fixed expenses Sales Variable manufacturing Manufacturing margin Cther variable expenses Safes Variable manufacturing expenses as a percentage of sales Other variable expenses as a percentage of sales Direct fixed expenses Allocated common fixed expenses Required Contribution margin Total direct costs: Direct fixed expenses Allocated common the expense Total Procuct margin Unallocated common fued expenses Professional division income toss! Total $246,000 $956,000 The professional accounting books are sold to auditors and controllers. The current information on these markets is as follows: Sales Variable manufacturing 123.000 142 200 18.300 12,300 135.300 150,500 110.700 205.500 120.000 132,000 (300) $73.500 Accounting Books Segment Manufacturing margin Other variable expenses 5 Contribution margin Direct fixed expenses Market margin Allocated common fixed expenses Marketinceme (los) Inallocated common thred expenses Accounting market Income (los) Business Books Publishers Inc. Professional Division: Segment and Divisional Income Statements For the Month of May Accounting 84.000 1 5 50.400 33.000 ✓ 4,200 29.400 3 a. Prepare an Income statement segmented by product for the Professional Division, Include a column for the division as a whole. Note: Do not use a negative sign with your answers with the exception of a negative product margin or a division loss which should have a negative sign. 5 30,000 ✓ 2.400 32.400 ✓ 13.000) $ Professional Division Accounting Executive Management Books Books Segment Segment 584,000 Books Segment $84.000 60% 40% 376 3% 595 $30,000 $2,400 7.200✔ 900✔ 6,300 9.000✔ (2.700)✓ 900✓ 0x5 Accounting Books Segment Auditors Market Controllers Market Total $66.000 $84.000 $18.000 $44,090 $1.200 Executive 84,000 33.600 30.400✓ 4,200✓ 46.200 Business Books Publishers Inc. Professional Division Market Income Statements: Accounting Books Segment For the Month of May of May Auditors Market Controllers Market $18,0001 66,000$ 10.800 39.600✔ 26.400✔ 3.300 ✓ 23,100✔ 10.000 5.100 $9.000 $900 44,080✔ 1.200 ✓ 45.200 920 ✓ 00% 676 Auditors Market Discontinue in the short run ✔ Controllers Market Keep in the short run # ✔ 39.000✔ 39.000 3,000 35.100 b. Prepare an income statement segmented by market for the Accounting Books Segment of the Professional Division. Note: Do not use a negative sign with your answers with the exception of a negative market margin, a market loss, or an accounting market loss which should have a negative sign. 30,000 ✓ 3,600 33.600 ✓ 1,500 1,200 ✓ 0x $78,000 50% 591 Management Professional Division 5 75,000 $ 246,000✔ $30,000 $3.500 $ 5 $10.000 $27.000 $1.200 $2.100 29,400 27.000 60% 676 Total 84,000 ✓ 50,400 23.600✔ 4,200 2.400✓ 2,100 x DXI 0x 0x 123.000 123.000 ✓ 12,300 ✓ 110700 104,080 ✓ 7.200 111.290 (580) ÜX * c. Evaluate which Accounting Books Segment the Professional Division should keep or discontinue in the short run Sales Less variable expenses Manufacturing Selling and administrative Tocal Contribution mergin Loss direct fixed expenses Net Income (less) Textbook Professional Company Division Division $120,000 19.200 6,000 25.200 94.800 12.000 $82,800 Management is concerned about the Professional Division and requests additional analysis, Additional information regarding May operations of the Professional Division is as follows: Sales Variable manufacturing expenses as a percentage of sales Other variable expenses as a percentage of sales Direct fixed expenses Allocated common fixed expenses Sales Variable manufacturing Manufacturing margin Cther variable expenses Safes Variable manufacturing expenses as a percentage of sales Other variable expenses as a percentage of sales Direct fixed expenses Allocated common fixed expenses Required Contribution margin Total direct costs: Direct fixed expenses Allocated common the expense Total Procuct margin Unallocated common fued expenses Professional division income toss! Total $246,000 $956,000 The professional accounting books are sold to auditors and controllers. The current information on these markets is as follows: Sales Variable manufacturing 123.000 142 200 18.300 12,300 135.300 150,500 110.700 205.500 120.000 132,000 (300) $73.500 Accounting Books Segment Manufacturing margin Other variable expenses 5 Contribution margin Direct fixed expenses Market margin Allocated common fixed expenses Marketinceme (los) Inallocated common thred expenses Accounting market Income (los) Business Books Publishers Inc. Professional Division: Segment and Divisional Income Statements For the Month of May Accounting 84.000 1 5 50.400 33.000 ✓ 4,200 29.400 3 a. Prepare an Income statement segmented by product for the Professional Division, Include a column for the division as a whole. Note: Do not use a negative sign with your answers with the exception of a negative product margin or a division loss which should have a negative sign. 5 30,000 ✓ 2.400 32.400 ✓ 13.000) $ Professional Division Accounting Executive Management Books Books Segment Segment 584,000 Books Segment $84.000 60% 40% 376 3% 595 $30,000 $2,400 7.200✔ 900✔ 6,300 9.000✔ (2.700)✓ 900✓ 0x5 Accounting Books Segment Auditors Market Controllers Market Total $66.000 $84.000 $18.000 $44,090 $1.200 Executive 84,000 33.600 30.400✓ 4,200✓ 46.200 Business Books Publishers Inc. Professional Division Market Income Statements: Accounting Books Segment For the Month of May of May Auditors Market Controllers Market $18,0001 66,000$ 10.800 39.600✔ 26.400✔ 3.300 ✓ 23,100✔ 10.000 5.100 $9.000 $900 44,080✔ 1.200 ✓ 45.200 920 ✓ 00% 676 Auditors Market Discontinue in the short run ✔ Controllers Market Keep in the short run # ✔ 39.000✔ 39.000 3,000 35.100 b. Prepare an income statement segmented by market for the Accounting Books Segment of the Professional Division. Note: Do not use a negative sign with your answers with the exception of a negative market margin, a market loss, or an accounting market loss which should have a negative sign. 30,000 ✓ 3,600 33.600 ✓ 1,500 1,200 ✓ 0x $78,000 50% 591 Management Professional Division 5 75,000 $ 246,000✔ $30,000 $3.500 $ 5 $10.000 $27.000 $1.200 $2.100 29,400 27.000 60% 676 Total 84,000 ✓ 50,400 23.600✔ 4,200 2.400✓ 2,100 x DXI 0x 0x 123.000 123.000 ✓ 12,300 ✓ 110700 104,080 ✓ 7.200 111.290 (580) ÜX * c. Evaluate which Accounting Books Segment the Professional Division should keep or discontinue in the short run

Answer rating: 100% (QA)

Answers to Questions Textbooks Divisions total sales 200000 Professional Divisions total sa... View the full answer